Skip to content
    calculator

    Liquidation calculator.

    Estimate uses a flat maintenance amount at entry. Fees, funding, risk tiers, other positions and collateral haircuts are excluded.

    Looking for USDT APR? Read the annual-rate example

    Loading…

    Margin and P&L: USDT. Prices and notional: USDT.

    Changing the contract or margin coin clears amounts and prices. Enter values in the new units.

    The worked examples and formula walkthroughs on this page use linear USDT/USDC contracts unless stated otherwise.

    Estimate uses a flat maintenance amount at entry. Fees, funding, risk tiers, other positions and collateral haircuts are excluded.

    Estimated liquidation price ⁦58,825.00 USDT⁩, 9.50% from entry. Entered collateral ⁦1,000.00 USDT⁩.

    Liquidation Price Calculator

    Estimate where your position gets liquidated

    Leverage10x
    Maintenance Margin Rate0.5%

    Est. Liquidation Price

    ⁦58,825.00 USDT⁩

    Distance: 9.50% (⁦6,175.00 USDT⁩)

    LiquidationEntry
    ⁦58,825.00 USDT⁩⁦65,000.00 USDT⁩
    Position Size
    ⁦10,000.00 USDT⁩
    Quantity
    0.153846
    Initial Margin
    ⁦1,000.00 USDT⁩
    Maintenance Margin
    ⁦50.00 USDT⁩

    Collateral entered in this model

    Collateral used in this calculation: ⁦1,000.00 USDT⁩ (your entered margin).

    Estimate uses a flat maintenance amount at entry. Fees, funding, risk tiers, other positions and collateral haircuts are excluded. Insurance funds, loss-allocation mechanisms or automatic deleveraging operate under specific venue rules. They are not a blanket promise to reimburse a trader’s margin or remove every possible obligation. Read the applicable account and contract protections.

    Results are estimates only and should not be relied upon for financial decisions.

    Margin and P&L: USDT. Prices and notional: USDT.

    Changing the contract or margin coin clears amounts and prices. Enter values in the new units.

    The worked examples and formula walkthroughs on this page use linear USDT/USDC contracts unless stated otherwise.

    Profit / Loss Calculator

    Calculate your potential profit or loss on a trade

    Leverage10x
    Trading Fee (per side)0.04%

    Net Profit / Loss

    ⁦+760.92 USDT⁩

    +76.09% ROI
    Investment (USDT)Exit Value
    ⁦1,000.00 USDT⁩⁦1,760.92 USDT⁩
    Position Size
    ⁦10,000.00 USDT⁩
    Quantity
    0.153846
    PnL Before Fees
    ⁦+769.23 USDT⁩
    Total Fees
    ⁦−8.31 USDT⁩
    Price Change
    +7.69%
    Leveraged Return
    +76.09%

    This calculator shows estimated results. Actual PnL may vary due to slippage, funding rates, partial fills, and exchange-specific fee tiers. Fee presets reflect typical maker/taker rates on major exchanges.

    What Is a Liquidation Price?

    Liquidation is the exchange reducing or closing a position when its maintenance-margin requirement is no longer met. For perpetual futures, margin backs a larger notional exposure; leverage does not itself mean the exchange lends you the whole position value. Liquidation generally begins before the modeled margin reaches zero. Bankruptcy price, liquidation trigger and final execution price are different concepts; losses and settlement depend on the contract and account rules.

    For an isolated position opened with sufficient margin, the liquidation threshold is normally below entry for a long and above entry for a short. At fixed entry and initial margin, higher leverage leaves less room for an adverse move. The shortcut 1 ÷ leverage describes margin exhaustion with zero maintenance and no costs, not an exact liquidation distance. Maintenance, fees, funding and account collateral change the threshold.

    Estimate the liquidation threshold before opening a position and check the exchange’s current margin rules. A protective stop belongs between entry and liquidation for the same price reference, but mark price and last traded price can differ. A stop may slip or fail to fill and does not guarantee a limited loss. This calculator illustrates a simplified model; it cannot guarantee an exit or replace the exchange’s account-level calculation.

    How Liquidation Works: Step by Step

    The steps below explain the main concepts, not a guaranteed sequence or warning period. The venue and margin mode determine the process, and fast markets can leave no time to react:

    1. You Open a Leveraged Position

    You post margin to support a larger derivatives exposure. In this illustration, $400 of initial margin at 25x gives $10,000 of position notional before fees. That notional is not, by itself, a cash loan. Borrowing can arise separately under the account’s rules.

    2. The Market Moves Against You

    If you're long and the price drops, or short and the price rises, your unrealized losses grow. These losses are deducted from your margin balance in real-time.

    3. Margin Call Warning

    Margin alerts depend on the venue and account settings. They may arrive late or not at all and provide no guaranteed grace period. Maintenance requirements vary by contract and risk tier; do not assume a universal rate or wait for a warning before managing exposure.

    4. Forced Liquidation

    For contracts that use mark price to trigger liquidation, that reference can reach the threshold before the last traded price shown on your chart. The liquidation engine may reduce or close the position under the venue’s rules. Cross or portfolio margin may use account-level risk thresholds. Execution price, fees and settlement determine the final loss; the trigger alone does not specify it.

    5. Insurance Fund or Socialized Losses

    After a liquidation trigger, the final execution price can differ from both the trigger and bankruptcy prices. Bankruptcy price represents exhaustion of the modeled position margin. Depending on the venue, an insurance fund may absorb a deficit from execution beyond bankruptcy; insufficient reserves may lead to auto-deleveraging (ADL). Settlement and loss allocation follow the contract and account rules.

    How to Calculate Profit and Loss

    For a linear long, gross P&L is base-asset quantity × (exit price − entry price). For an inverse long, it is quote notional × (1 ÷ entry price − 1 ÷ exit price), settled in the base asset. Reverse the difference for a short. ROI is P&L ÷ initial margin × 100.

    Long PnL: Linear: Quantity × (Exit Price − Entry Price) − Fees

    Short PnL: Linear: Quantity × (Entry Price − Exit Price) − Fees

    ROI: Net PnL ÷ Investment × 100%

    Hypothetical linear long: 1,000 USDT margin at 10× gives 10,000 USDT entry notional. A 5% rise produces 500 USDT gross profit; a 5% fall produces a 500 USDT gross loss, or ±50% of initial margin before costs. At fixed quantity, changing leverage changes required margin rather than price P&L. Inverse settlement behaves differently. A 10% adverse move is not a universal liquidation trigger.

    How Is Liquidation Price Calculated?

    These long/short formulas describe the linear model with maintenance fixed on entry notional. Inverse contracts use reciprocal-price P&L:

    Long: Liq. Price = Entry × (1 − (Margin − Maintenance) ÷ Position Size)

    Short: Liq. Price = Entry × (1 + (Margin − Maintenance) ÷ Position Size)

    Estimate uses a flat maintenance amount at entry. Fees, funding, risk tiers, other positions and collateral haircuts are excluded.

    Worked Example: Long Position

    Suppose you open a long BTC position at $90,000 with $1,000 margin and 20x leverage. Your position size is $20,000 (≈ 0.2222 BTC). With a 0.5% maintenance margin rate:

    • Maintenance margin = $20,000 × 0.5% = $100

    • Available margin before liquidation = $1,000 − $100 = $900

    • Price drop to liquidation = $900 ÷ (2/9 BTC) = $4,050

    • Liquidation price = $90,000 − $4,050 = $85,950

    • A 4.5% price drop reaches the liquidation threshold in this simplified model; the actual closing price and final loss can differ.

    Worked Example: Short Position

    Now imagine shorting ETH at $3,500 with $500 margin and 10x leverage. Position size is $5,000 (≈ 1.4286 ETH). With 0.5% maintenance margin:

    • Maintenance margin = $5,000 × 0.5% = $25

    • Available margin = $500 − $25 = $475

    • Price rise to liquidation = $475 ÷ (10/7 ETH) = $332.50

    • Liquidation price = $3,500 + $332.50 = $3,832.50

    • That's a 9.5% price increase — more room than the long example because leverage is lower

    Isolated vs Cross Margin

    The margin mode you choose fundamentally changes your risk profile. Understanding the difference is essential before placing any leveraged trade.

    Isolated Margin

    Margin is assigned to a position under the account rules. Initial allocation is not a universal loss cap: manual or automatic additions, fees and other obligations can change the amount at risk. Check replenishment settings and applicable contractual protections.

    • Exposure depends on collateral additions and account rules
    • Margin is assigned to the individual position
    • The trigger depends on collateral and maintenance

    Cross Margin

    Eligible collateral is shared within the relevant margin account. Losses, funding and changes in collateral valuation can affect other positions in that scope. This does not necessarily include every wallet or balance held with the provider.

    • Eligible collateral is shared within the margin account
    • Profits from one position can offset losses on another
    • Risk of total account wipeout

    Leverage and Liquidation Distance

    Illustrative isolated linear positions at 0.5% fixed maintenance. Distances below are computed by the same model as the calculator. They are not probabilities or safety ratings.

    LeveragePrice Move to Liquidation
    2×49.50%
    3×32.83%
    5×19.50%
    10×9.50%
    20×4.50%
    50×1.50%
    100×0.50%
    125×0.30%

    Common Liquidation Mistakes

    These examples explain assumptions that can change the outcome; they do not guarantee that liquidation can be avoided.

    ❌ No Stop-Loss Order

    Without a stop-loss you are relying on watching the market around the clock, and crypto moves while you sleep. Place the stop on the safe side of your liquidation price, in the direction of your entry: for a long, liquidation sits below the entry, so the stop goes between the two (liquidation < stop < entry); for a short, liquidation sits above the entry, so the stop goes between them (entry < stop < liquidation).

    ❌ Ignoring Funding Rates

    Funding uses position notional and the contract’s current settlement schedule, which can change. Assuming an unchanged rate and notional and a position held through every settlement, work it out as rate × notional × settlements, then translate it into margin: at 0.1% per 8-hour settlement, a week costs 21 settlements × 0.1% = 2.1% of notional — 21% of the initial margin at 10x, 42% at 20x — moving your effective liquidation price closer. Whether you pay or receive depends on your side and the sign of the rate.

    Tips to Avoid Liquidation

    ✅ Use Lower Leverage (2x–5x)

    Under this calculator’s isolated, fixed-maintenance model: Lower leverage puts the liquidation price further away. At a 0.5% maintenance rate a 5x long is liquidated after a 19.5% adverse move and a 10x long after 9.5%, while a 50x position dies on a 1.5% dip. None of these is safe — a 20% drawdown finishes the 5x trade too — but the lower the leverage, the more ordinary volatility a position can sit through.

    ✅ Set Stop-Loss Orders

    Illustrative example, not a recommended buffer: with entry 65,000, 10× leverage and 0.5% maintenance in this calculator's simplified model, a stop 75% of the way from entry to liquidation is 60,368.75 for a long (liquidation 58,825) and 69,631.25 for a short (liquidation 71,175). These comparisons assume the same trigger-price reference. Liquidation uses the mark price; a stop triggered by the last traded price can lag. Check your venue's trigger and order rules. A triggered stop may fill with slippage or fail to fill; it does not guarantee a loss limit.

    Frequently Asked Questions

    What happens when you get liquidated?+
    For contracts that use mark price to trigger liquidation, that reference can reach the threshold before the last traded price shown on your chart. The liquidation engine may reduce or close the position under the venue’s rules. Cross or portfolio margin may use account-level risk thresholds. Execution price, fees and settlement determine the final loss; the trigger alone does not specify it. After a liquidation trigger, the final execution price can differ from both the trigger and bankruptcy prices. Bankruptcy price represents exhaustion of the modeled position margin. Depending on the venue, an insurance fund may absorb a deficit from execution beyond bankruptcy; insufficient reserves may lead to auto-deleveraging (ADL). Settlement and loss allocation follow the contract and account rules.
    Can you get liquidated on spot trading?+
    Fully paid spot holdings, without borrowing or pledging them as collateral, are not subject to margin liquidation merely because their price falls. Their market value can still fall to zero. Spot-margin loans or assets pledged to secure another obligation can be liquidated under the account's rules; holding an asset in a spot wallet does not by itself prove that it is unencumbered.
    What is the difference between liquidation price and bankruptcy price?+
    A liquidation trigger is a maintenance threshold; it is distinct from the eventual execution or settlement price. Bankruptcy price is the model's zero-equity level. For the default linear isolated long — $65,000 entry, $1,000 margin, 10x leverage and 0.5% maintenance — the estimates are $58,825 and $58,500 respectively. Partial liquidation, costs and account rules can change the actual outcome.
    Do I lose everything when I get liquidated?+
    Margin is assigned to a position under the account rules. Initial allocation is not a universal loss cap: manual or automatic additions, fees and other obligations can change the amount at risk. Check replenishment settings and applicable contractual protections. Eligible collateral is shared within the relevant margin account. Losses, funding and changes in collateral valuation can affect other positions in that scope. This does not necessarily include every wallet or balance held with the provider. Insurance funds, loss-allocation mechanisms or automatic deleveraging operate under specific venue rules. They are not a blanket promise to reimburse a trader’s margin or remove every possible obligation. Read the applicable account and contract protections. For example, Bybit settles a liquidated futures position at its bankruptcy price and sends any margin left from better execution to its insurance fund, rather than refunding that surplus to the liquidated trader. Do not apply that product rule to every venue or account.
    How can I calculate my liquidation price before opening a trade?+
    Estimate uses a flat maintenance amount at entry. Fees, funding, risk tiers, other positions and collateral haircuts are excluded. Linear isolated example: entry $50,000, margin $1,000 and 10x leverage give $10,000 entry notional. Fixed maintenance of 0.5% of that notional is $50. The model estimates the long trigger as $50,000 × (1 − (1,000 − 50) ÷ 10,000) = $45,250. Inverse contracts use reciprocal-price P&L. Confirm the actual venue's tiers, collateral rules and position estimate; this result is not its liquidation quote.
    Does funding rate affect liquidation price?+
    Funding transfers depend on the contract and can be positive, negative or zero. The sign describes the payment direction; it does not establish traders’ motives or predict the next price move. Under the usual long-to-short convention, a positive rate means long positions pay short positions. A quoted rate must be read with its interval, accrual method and position valuation. It is not a guaranteed income stream for the receiving side. Under the same convention, a negative rate means short positions pay long positions. Rates can change or reverse. Price losses, fees and changes in collateral can exceed funding received; the sign alone is not a trading signal. Adverse prices, falling collateral values, funding, fees and other account exposures can reduce the maintenance buffer. A displayed liquidation estimate can change even without a matching move in the last-traded price.
    What is auto-deleverage (ADL)?+
    Auto-deleveraging (ADL) can reduce or close opposing positions under an exchange's loss-allocation rules. The trigger, ranking and settlement price depend on the product; ADL need not wait until an insurance fund is empty. Consult the current contract rules and the position's ADL indicator, where available. A profitable position is not exempt.
    Is higher leverage always worse?+
    Hypothetical linear long: 1,000 USDT margin at 10× gives 10,000 USDT entry notional. A 5% rise produces 500 USDT gross profit; a 5% fall produces a 500 USDT gross loss, or ±50% of initial margin before costs. At fixed quantity, changing leverage changes required margin rather than price P&L. Inverse settlement behaves differently. A 10% adverse move is not a universal liquidation trigger. For otherwise identical exposure and rules, more supporting equity can increase the buffer to maintenance. A fixed leverage range is not universally safe or suitable, and reducing the leverage setting is not the same as reducing the position’s notional exposure. For otherwise identical exposure and rules, a smaller initial margin leaves less room for losses and costs before maintenance is reached. Permitted leverage depends on current product and account limits; expertise does not remove liquidation or execution risk.

    Get Started with Kraken

    Before registering with Kraken, check the products available in your location, applicable fees and account requirements.

    Visit Kraken

    Ad · Digital asset prices are subject to high market risk and price volatility. Don't invest unless you're prepared to lose all the money you invest. Terms & risk disclosure

    This page contains affiliate links. We may earn a commission if you sign up, at no extra cost to you.

    Derivatives & Leveraged Products — Important Risk Warning

    Derivatives and leveraged products are complex and carry a high risk of rapid, substantial losses. Depending on the product and account rules, losses can exceed the initial margin or money committed. A stand-alone purchased option can lose its entire premium plus transaction costs; writing options, exercising into another position, or combining positions can create additional obligations. An uncovered call writer can face unlimited loss. Applicable legal protections can affect the loss boundary.

    You should carefully consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This content is for educational purposes only and does not constitute financial advice, investment advice, or a recommendation to trade derivatives.

    Legal availability and regulatory protections depend on the product, service, provider and jurisdiction. In the EU, check the applicable investment-services rules, including MiFID II where relevant, and any product restrictions. Before trading, verify with the relevant regulator whether the provider has the permissions required for the service and whether the product may be offered to you. A website being accessible, or a product appearing on this website, does not establish authorization or eligibility.

    Related Tools & Guides

    What Is a Margin Call?How margin calls work and 5 ways to avoid them.Best Position Size for $1,000Risk management rules for small accounts.Risk/Reward CalculatorEvaluate trade setups before entering.Funding Rate TrackerMonitor live perpetual contract rates.Overleveraging GuideWhy most leveraged traders lose.Margin Trading GuideUnderstand margin calls and liquidation.Spot vs FuturesWhen to use leverage vs spot.

    What does 7.03% APR on USDT mean?

    APR is an annualized rate. In this hypothetical USDT yield example, 7.03% is a simple annual rate before compounding, not a daily return or a verified current offer.

    With 1,000 USDT, an unchanged 7.03% rate and a 365-day year, simple earnings would be 70.30 USDT over 365 days, or about 5.78 USDT over 30 days, before fees. Reinvesting earnings changes the result; APY includes the assumed compounding effect.

    1,000 USDT × 0.0703 × 30 ÷ 365 ≈ 5.78 USDT

    A yield APR estimates earnings; a borrowing APR describes a cost. Perpetual funding is a separate payment between positions at the contract’s settlement intervals. None of these percentages is the price move that triggers liquidation. This calculator estimates liquidation from position and margin inputs; it does not calculate savings returns.

    Check the product’s current rate, eligible balance tiers, accrual timing, redemption conditions and fees. A displayed APR guarantees neither the rate nor the principal, and USDT’s market value can change.

    How compounding works — CFPB

    Methodology, checks and sources

    Educational scenarios for linear USDT/USDC and inverse coin-margined contracts. These are not exchange-specific liquidation engines or forecasts.

    For derivatives, leverage is notional exposure divided by initial margin. At 8×, 1 unit of margin backs 8 units of exposure; this does not itself create a loan. Spot margin borrowing is a different product.

    • Maintenance is fixed at entry. Cross margin models one position backed by the entered wallet balance. Fees, funding, changing risk tiers, other positions and collateral haircuts are excluded. Actual venues can use different formulas and mark-price triggers.
    • Size targets a planned loss at an exact stop fill. Fees, funding, gaps and slippage are excluded. The bankruptcy boundary is not the actual liquidation trigger; maintenance and costs can cause earlier liquidation.
    • The projection holds rate, position value, mark price and interval constant. It does not model changing rates or actual settlement timestamps. Kraken accrues funding continuously; its hourly equivalent is a comparison basis.
    • Annualized % = native rate % × 24 ÷ interval hours × 365. This is simple annualization without compounding, not a promised yield. Missing quotes are not zero rates.

    Worked verification examples

    • Isolated USDT: entry 65,000, margin 1,000, 10×, maintenance 0.5% → long 58,825; short 71,175.
    • The same position with cross collateral 2,000 USDT → long 52,325 USDT.
    • Inverse BTC: entry 65,000 USD, margin 0.01 BTC, 10×, maintenance 0.5% → long 59,360.73 USD.
    • USDT account 10,000, planned risk 1%, stop distance 5%, 5× → notional 2,000, margin 400, planned loss 100 USDT.
    • USDT margin 1,000, 10×, constant 0.01% per 8 hours for 7 days → long pays 21 USDT; short receives the same amount.

    Zero entry prices, zero stop distances and maintenance at or above collateral cannot define a valid position. Zero funding produces zero cost; negative funding reverses payer and recipient.

    Primary sources

    • Bybit · Liquidation Calculator
    • Bybit · Funding Rate Calculator
    • Binance API
    • Bybit API
    • OKX API
    • KuCoin API
    • Kraken API

    Responsible publisher: MN Media s.r.o.

    Model and source checks: . Calculation tests and source review; not an independent financial certification.